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Prudential Financial (Prudential Financial) Cyclically Adjusted Price-to-FCF : 2.91 (As of Apr. 28, 2024)


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What is Prudential Financial Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Prudential Financial's current share price is $110.50. Prudential Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $37.91. Prudential Financial's Cyclically Adjusted Price-to-FCF for today is 2.91.

The historical rank and industry rank for Prudential Financial's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

PRU' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 1.15   Med: 2.93   Max: 5.03
Current: 2.92

During the past years, Prudential Financial's highest Cyclically Adjusted Price-to-FCF was 5.03. The lowest was 1.15. And the median was 2.93.

PRU's Cyclically Adjusted Price-to-FCF is ranked better than
85.8% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs PRU: 2.92

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Prudential Financial's adjusted free cash flow per share data for the three months ended in Dec. 2023 was $3.055. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $37.91 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Prudential Financial Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Prudential Financial's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Prudential Financial Cyclically Adjusted Price-to-FCF Chart

Prudential Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.58 2.09 2.75 2.66 2.74

Prudential Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.66 2.16 2.30 2.45 2.74

Competitive Comparison of Prudential Financial's Cyclically Adjusted Price-to-FCF

For the Insurance - Life subindustry, Prudential Financial's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Prudential Financial's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Prudential Financial's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Prudential Financial's Cyclically Adjusted Price-to-FCF falls into.



Prudential Financial Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Prudential Financial's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=110.50/37.91
=2.91

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Prudential Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Prudential Financial's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=3.055/129.4194*129.4194
=3.055

Current CPI (Dec. 2023) = 129.4194.

Prudential Financial Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 4.229 99.695 5.490
201406 7.655 100.560 9.852
201409 12.572 100.428 16.201
201412 17.608 99.070 23.002
201503 11.953 99.621 15.528
201506 -4.453 100.684 -5.724
201509 18.158 100.392 23.408
201512 4.610 99.792 5.979
201603 13.980 100.470 18.008
201606 16.046 101.688 20.422
201609 7.983 101.861 10.143
201612 -5.008 101.863 -6.363
201703 3.753 102.862 4.722
201706 7.015 103.349 8.785
201709 9.364 104.136 11.638
201712 10.810 104.011 13.451
201803 5.344 105.290 6.569
201806 10.220 106.317 12.441
201809 8.460 106.507 10.280
201812 26.445 105.998 32.288
201903 7.387 107.251 8.914
201906 12.658 108.070 15.159
201909 17.909 108.329 21.396
201912 9.864 108.420 11.775
202003 37.194 108.902 44.202
202006 -3.262 108.767 -3.881
202009 -1.506 109.815 -1.775
202012 -11.385 109.897 -13.407
202103 -8.267 111.754 -9.574
202106 11.145 114.631 12.583
202109 14.005 115.734 15.661
202112 8.753 117.630 9.630
202203 0.003 121.301 0.003
202206 4.009 125.017 4.150
202209 11.531 125.227 11.917
202212 -1.691 125.222 -1.748
202303 3.652 127.348 3.711
202306 3.343 128.729 3.361
202309 7.832 129.860 7.805
202312 3.055 129.419 3.055

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Prudential Financial  (NYSE:PRU) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Prudential Financial Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Prudential Financial's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Prudential Financial (Prudential Financial) Business Description

Address
751 Broad Street, Newark, NJ, USA, 07102
Prudential Financial is a large, diversified insurance company offering annuities, life insurance, retirement plan services, and asset management products. While it operates in a number of countries, the vast majority of revenue is generated in the United States and Japan. The company's investment management business, PGIM, contributes approximately 15% of its earnings and has over $1.5 trillion in assets under management. The U.S. businesses are responsible for about 45% of earnings and can be classified into Institutional Retirement Strategies, Individual Retirement Strategies, Group Insurance, Individual Life Insurance, and Assurance IQ. Finally, the international business segment of the company contributes approximately 40% of earnings with a strong market position in Japan.
Executives
Kenneth Tanji officer: EVP and CFO 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Timothy L Schmidt officer: Senior Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Kathleen Murphy director 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Caroline Feeney officer: Executive Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Ann M Kappler officer: EVP and General Counsel PRUDENTIAL FINANCIAL, INC., 751 BROAD STREET, 5TH FLOOR, NEWARK NJ 07102
Robert Axel officer: SVP and Controller 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Andrew F Sullivan officer: Executive Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Nicholas C Silitch officer: Senior Vice President 751 BROAD STREET, 5TH FLR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Scott Sleyster officer: Senior Vice President 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Robert Falzon officer: EVP and CFO 751 BROAD STREET, 5TH FLOOR, ATTN.: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Charles F Lowrey officer: Executive Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102
Michael Todman director C/O TMA LIMITED, LLC, 500 RENAISSANCE DRIVE, SUITE 103B, ST. JOSEPH MI 49085
Wendy Elizabeth Jones director 2025 HAMILTON AVE, SAN JOSE CA 95125
Stacey Goodman officer: Executive Vice President C/O CIT GROUP INC., ATTN:GENERAL COUNSEL, 1 CIT DRIVE, LIVINGSTON NJ 07039
Candace Woods officer: Senior Vice President 751 BROAD STREET, 5TH FLOOR, ATTN: REGULATORY FILINGS UNIT, NEWARK NJ 07102